The Securities and Exchange Commission (SEC) has backtracked on another crypto-related enforcement action or investigation. Yesterday, Cumberland DRW posted on X that its case had been dismissed in principle and is currently awaiting Commission approval.
Cumberland said it was looking forward to working with the SEC to help shape a future that enables innovation and includes regulatory clarity.
In October 2024, the SEC accused Cumberland of acting as an unregistered broker-dealer involving over $2 billion of crypto assets offered and sold.
At that time, the Acting Chief of the SEC’s Crypto Assets and Cyber Unit, issued a statement declaring that “Despite frequent protestations by the industry that sales of crypto assets are all akin to sales of commodities, our complaint alleges that Cumberland, the respective issuers, and objective investors treated the offer and sale of the crypto assets at issue in this case as investments in securities.”
The contrast is stark between the Commission under the leadership of former Chairman Gary Gensler and the Republican-led Commission that has embraced innovation and the need to pursue a path of regulatory clarity as opposed to regulation by enforcement.
Today we signed a joint filing to be made with the Securities and Exchange Commission (SEC) dismissing its case against Cumberland DRW. The filing was agreed in principle between Cumberland DRW and SEC staff on February 20 and is currently pending Commission approval. As a firm…
— Cumberland (@CumberlandSays) March 4, 2025
While the Trump Administration has supported digital asset innovation, including digital securities, the Biden Adminstration vilified the industry which is global and stands to completely change the securities industry. Over time, it will be apparent to all that the last Administration under the leadership of President Biden, was on the wrong side of history, completely missing a profound opportunity.
